PayPal will reportedly release new artificial intelligence (AI) features meant to drive faster purchases as well as AI-assisted personalization for consumers and AI-assisted sales for merchants as announced by CEO Alex Chriss on Thursday.
This announcement is reportedly the first and latest major move from PayPal's new chief executive officer to attract investors since joining PayPal in September, effectively joining the AI craze, which contributed to this month's record highs for U.S. stock markets.
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PayPal has announced that its stablecoin for transactions and transfers, PYUSD, is now accessible on Venmo.
Alongside these new AI-driven features is PayPal's Fastlane, a brand-new one-click guest checkout feature that businesses utilizing PayPal's platform can supposedly provide to consumers to check out with only one swipe by saving their information.
The Fastlane feature will reportedly no longer require users to provide their credit card information with companies across the internet, nor usernames or passwords, or personal information to update, thus enabling a quicker and smoother transaction.
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PayPal's AI Innovations
The first for PayPal's AI-driven products is Smart Receipts, a feature that will help find the best offers for customers and encourage merchants to attract repeated transactions.
When customers shop using PayPal, the new feature will send a receipt that enables them to trace their purchases and use artificial intelligence (AI) to suggest possible future purchases from that merchant. Consequently, retailers may now include a cashback incentive offer and a customized recommendation to the receipt.
Additionally, PayPal has revealed that it would be developing a new "advanced offers platform" that will enable retailers to contact customers based on the products and stock keeping units (SKUs) that they have previously purchased online.
According to reports, this new performance-based function can employ AI to organize and analyze data from merchant transactions worth about half a trillion dollars worldwide.
Retailers will supposedly be able to personalize offers for clients thanks to this functionality, while only being charged for actual results rather than impressions or clicks. Customers of PayPal on the other hand, will benefit from more relevant offers and chances to earn rewards.
PayPal is also launching CashPass, a feature that employs AI to organize tailored offers for clients based on purchase patterns, meant to provide users with access to customized cash-back deals from leading American brands.
To utilize the deal, a user only needs to tap to make a purchase from that company, and pay with PayPal. Clients will often see fresh cash back offers providing them additional incentive to use the app.
PayPal's AI Causes Shares to Fall
Despite being a push to attract investors, announcing these new features has seemingly caused PayPal's shares to fall as per CNBC report. Reuters adds that after the news was processed by investors, PayPal's shares dropped 4.6%.
Josh Brown, CEO of Ritholtz Wealth Management, stated during a CNBC interview that market manipulation might be to blame for the decline in PayPal share prices, but he insisted that the announcements were really small, incremental upgrades to already-existing items.
As per a Wall Street Journal report, BTIG analyst Andrew Harte says that investors most likely did not regard PayPal's announcements as revolutionary new information, but rather as projects that the firm was previously expected to be working on.
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